Crude Oil prices rallied on news that Iranian oil exports have fallen significantly this month as tightening Western sanctions have caused some buyers to stop or scale back purchases. Iran's crude exports appear to have fallen in March by around 300,000 barrels per day, or 14 percent, the first sizeable drop in shipments this year. President Barack Obama on Friday said that tension in Iran and the Middle East is adding about $20 to $30 a barrel to the price of oil and is helping drive up the price of gasoline. Ahead of the Iranian export news, oil prices had received support from a drop in the dollar. The euro climbed to a three-week high against the dollar. A weaker U.S. currency can lift dollar-denominated crude oil by making it less expensive for consumers using other currencies. The oil complex rally came after crude futures slid the previous session on disappointing Chinese manufacturing data and euro zone PMI figures. Before the price spike on news of slumping Iranian exports, the International Energy Agency's (IEA) said it did not believe there would be any disruptions to global oil supply as Saudi Arabia and other Gulf producers will bring more oil to the market. Saudi Arabia said Tuesday it was ready to raise its output to 12.5 million barrels per day from current levels just below 10 million bpd. Now technically market is trading in the range as RSI for 18days is currently indicating 62.05, where as 50DMA is at 5236.14 and crude is trading above the same and getting support at 5479 and below could see a test of 5471 level, And resistance is now likely to be seen at 5496, a move above could see prices testing 5505.

Trading Ideas:

Crude trading range for the day is 5471-5505.

Crude oil prices rallied on news that Iranian oil exports have fallen significantly this month

Ahead of the Iranian export news, oil prices had received support from a drop in the dollar

Iran's crude exports appear to have fallen in March by around 300,000 barrels per day, or 14 percent